AT&T Buys T-Mobile for £24 Billion ($39 Billion)

Posted on Mar 20 2011 - 10:30pm by Richard Sharp

AT&T has beaten Sprint to the punch by agreeing to purchase T-Mobile for $39 billion (£24 billion). The deal will further cement the mobile communication giants’ stronghold as they now own both the first and fourth largest networks in the US.

AT&T have around 95.5 million customers and will now service the 23 million customers who use T-Mobiles’ network. This won’t mean any changed branding for customers but will mean both networks will develop alongside one another, a benefit that the Sprint/Verizon conglomerate already enjoys.

Both T-Mobile and AT&T work on GSM technology meaning in theory there is only one network provider in the US that uses it. Both sets of customers will be able to take advantage of the upcoming 4G LTE technology. A spokesperson said: “This transaction represents a major commitment to strengthen and expand critical infrastructure for our nation’s future.”

AT&T said: “This transaction delivers significant customer, shareowner and public benefits that are available at this level only from the combination of these two companies with complementary network technologies, spectrum positions and operations.” They continued to explain that they are ‘confident’ in meeting both the FCC and President Obama’s goals for securing America’s digital communication needs.

The overall deal will comprise of $25 billion dollars as a lump sum with the remainder in stock which if plans pan out could be worth a great deal more than the $14 billion its worth now. Effectively this will give Deutsche Telekom an 8% share of all AT&T assets and a position on the board of directors.

This is a fantastic result for Deutsche Telekom who has achieved a fantastic sale price whilst still holding on to an asset which will continue to grow. AT&T now owns the 1st and 4th largest networks in the US putting them ahead of the Verizon Sprint brands.

Are you a T-mobile USA user? What do you make of the deal?

Via: Register

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